You know you have a good product when people come in the middle of the night.
In the early days of the first Krispy Kreme store, the Winston-Salem, North Carolina doughnut shop would offer doughnuts fresh out of the oven for sale, if customers wanted one then instead of waiting until the doughnuts were delivered to area convenience stores. The catch? They had to come to the store between the hours of midnight and 4 A.M. People came. Hot out of the oven doughnuts became so popular, Krispy Kreme eventually developed a “Hot Light” to let customers know when doughnuts are newly baked—a version of which still exists in its stores and as a mobile app feature.
With a history of demand like that, it’s no wonder why Krispy Kreme is one of the most popular bakery franchises in the world with locations in over 30 countries.
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Types of Krispy Kreme Franchises
The cost to open a new, Krispy Kreme franchise store, like most franchises, is highly variable. This is because Krispy Kreme franchise stores can be operated in two different formats, as detailed in its Franchise Disclosure Document (FDD):
- Hot Light Theater Shop – a retail sales facility that manufactures and produces fresh doughnuts on-site. Hot Light Theater Shops may have the capacity to supply fresh doughnuts to Fresh Shops and Box Shops. Hot Light Theater Shops were formerly known as Factory Stores.
- Fresh Shop – a retail sales facility with limited manufacturing capabilities (e.g., icing and filling equipment), or no manufacturing capabilities, that receives doughnuts from a Hot Light Theater Shop and finishes them as necessary to sell in accordance with system standards.
How Much Does a Krispy Kreme Franchise Cost?
The financial figures in the charts below come from the FDD of Krispy Kreme, dated 2022. The estimates are provided by the franchisor based of its years of experience in franchising its brand.
| Name of Fee | Low | High |
| Development Fee | $12,500 | $25,000 |
| Initial Franchise Fee | $12,500 | $25,000 |
| Real Estate and Improvements – 3 Months | $10,000 | $95,000 |
| Construction Costs | $325,000 | $2,860,000 |
| Equipment/Signage/Furniture/Fixtures | $175,000 | $550,000 |
| Truck (per truck) | $0 | $50,000 |
| Initial Inventory | $5,000 | $50,000 |
| Production Equipment | $0 | $425,000 |
| Grand Opening Marketing Program | $20,000 | $45,000 |
| Training Expenses | $17,500 | $55,000 |
| Security Deposits and Other Pre-Paids | $5,000 | $25,000 |
| Additional Funds – 3 Months | $40,000 | $125,000 |
| ESTIMATED TOTAL* | $622,500 | $4,330,000 |
*The estimated initial investment range covers from a fresh shop up to a hot light theater shop.
As with all franchise purchases, you should review the figures you obtain from the franchisor carefully with a professional business advisor before making the final decision to purchase the franchise.
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To explore related franchise options, browse our bakery & donut franchise opportunities page.